It’s decided, you’re going to take action. In the coming months, you will acquire your main residence. Or maybe go you get into real estate investing. Last case, which must concern many of you: borrowing rates have never been so low, it would be a shame not to take advantage of them. It is therefore time to renegotiate your mortgages made a few months or a few years ago. If you are in one of these situations, I have only one piece of advice to give you: go through a broker ! For what ? Let me explain all this to you, through 5 points, or even 6 with the last bonus item…
Before going any further, a quick introduction is in order. Because perhaps you ask yourself the question: what is a broker? To put it simply, you have to consider that it is an intermediary between you and the bank. There are brokers in various fields . An insurance broker will, for example, be your preferred contact to find the insurance that suits you at the best price. In the same spirit, a work broker will be responsible for finding the best craftsmen to carry out the work on your home: plumbing, electricity, gardening, etc.
Here, we will focus on the mortgage broker. You guessed it, his role is to find you the best possible mortgage for your real estate purchase. Or for your renegotiation. In short, your broker will be a valuable ally in your efforts to obtain a loan.
In our top reasons why you need to go through a broker, let’s start with the first step: getting a loan agreement for the house of your dreams. Because you are not necessarily rolling in gold and your file is a bit fair, the steps taken with your bank ended in a categorical refusal. You are a little shocked and saddened to see the large family home disappearing too quickly from your plans.
Good news, all hope is not lost. Try to contact and go through a broker. Thanks to his privileged relationships with various banking partners and his in-depth knowledge in the field, he may be able to get you the loan agreement you’ve been waiting for.
Numbers give you a headache. Your knowledge of the world of finance and banking is limited to the number displayed at the bottom of your payslip. And you feel quite incapable of defending your case in front of your banker. Or more simply, you are afraid of being taken in by your bank .
You are not necessarily wrong in this case, but let’s not generalize. 🙂
Again, going through a broker is the solution. Negotiating is his job. Presenting figures in the best possible way is his daily job. It would be a shame not to enjoy all this experience, right? He knows what criteria he can use to obtain the least expensive loan for you. An example ? I may never have heard of the possible savings with an insurance delegation if I had not gone through a broker for the loan of my principal residence.
Preparing your file, honing it and presenting it… These actions are far from trivial and going around the banks in the region will take you a significant amount of time. If you choose to go through a broker, you will only have to make an appointment to start the process. The one with your broker. He will then contact his partner banks and carry out all the procedures for you. It’s as much free time kept for you and your loved ones. It is also very likely that he will come back to you more quickly than if you had to go around the agencies in town yourself.
From my personal experience, a 2-3 week turnaround seems to be the norm depending on the time of year .
Without doubt one of the best reasons to go through a broker! And yes, we all seek to borrow at the lowest price. It is likely that your broker will get you better terms than what you got on your own. Because he is an expert. Because you may only have access to your advisor or branch manager when he potentially has access to the department manager. But also (and above all…) because it takes advantage of the volume effect by presenting several files simultaneously. And because it’s all in his interest…
This point may make some people react. A broker is potentially remunerated in two ways. At the bank where it takes you on the one hand. And with you as a customer. But this statement must be nuanced:
Going through a broker therefore makes it possible to put different banks in competition with each other without wasting time. As everyone knows, competition is good and mechanically allows for more relevant loan offers. But you can go further…
This is what I did last year by putting my broker and my bank in direct competition. By going back and forth between the offers of my broker and my bank, I managed to obtain particularly interesting offers from each of the protagonists. Of course, it took me a little time. But for a few thousand euros of gain, believe me that I have no regrets!
The rates being particularly low at the moment, I wonder if a third renegotiation of my loans would not be interesting…
During your real estate acquisitions, did you go through a broker? How has this helped you?